Posted 68 days ago
House Republicans fulfilled a key campaign promise on Monday, passing legislation to rescind the bulk of an IRS funding boost signed into law last year, marking the first bill passed by the GOP-controlled House this Congress.
The bill, which is unlikely to see action in the Democratic-controlled Senate, passed in a party-line 221-210 vote on Monday evening.
Speaker Kevin McCarthy (R-Calif.) announced that the first bill for a GOP-controlled House would be to repeal the new IRS funding in September, when House Republicans released their “Commitment to America” midterm policy and messaging platform ahead of the election.
A boost of about $80 billion in IRS funding over a decade generally aimed at upping high-income enforcement was included in last year’s Inflation Reduction Act, Democrats’ sweeping tax, health and climate bill.
The Republican bill, formally titled the “Family and Small Business Taxpayer Protection Act,” is barely longer than one page. It directs any “unobligated balances of amounts appropriated or otherwise made available” to the IRS from the Inflation Reduction Act to be rescinded.
The Congressional Budget Office (CBO) estimated Monday that the legislation would eliminate about $71 billion of the total $80 billion that was allocated for the IRS but would reduce tax revenue by about $186 billion, translating to a $114 billion increase in deficits over the next decade.
Republicans have repeatedly falsely claimed the 87,000 new IRS employees, who would be added over the course of a decade, would be “agents.”
The 87,000 figure comes from a May 2021 Treasury Department compliance report estimating new hires over a decade with the $80 billion funding boost. But only a small portion of the department’s current employees are agents, and the department has said the figure accounts for other workers such as customer service representatives and computer scientists as well as replacements for the 52,000 employees expected to retire or resign within the next six years.
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